The following refers to periodic inventory: Compute Cost of goods sold. $\begin{array}{|l|r|} \hline\text { Net sales } & \$ 198,000 \\ \hline\text { Purchases } & 92,000 \\ \hline \text { Purchases returns and allowances } & 1,800 \\ \hline \text { Purchases discounts } & 1,250 \\ \hline \text { Preight in } & 1,590 \\ \hline \text { Beginning merchandise inventory } & 63,000 \\ \hline \text { Ending merchandise inventory } & 37,000\\\hline \end{array}$

A) $116,540 B) $81,460 C) $114,950 D) $53,540 A) $116,540 B) $81,460 C) $114,950 D) $53,540

A) Transportation costs to ship goods into the warehouse B) Transportation costs that are not recorded C) Costs that are expensed D) Transportation costs to ship goods out of the warehouse A) Transportation costs to ship goods into the warehouse B) Transportation costs that are not recorded C) Costs that are expensed D) Transportation costs to ship goods out of the warehouse

Please refer to the following trial balance. \[\begin{array} { | l | r | r | } \hline &{ \text { Debit } } & { \text { Credit } } \\ \hline \text { Cash } & \$ 5,000 & \\ \hline \text { Accounts receivable } & 14,000 & \\ \hline \text { Inventory } & 20,000 & \\ \hline \text { Supplies } & 5,000 & \\ \hline \text { Land } & 100,000 & \\ \hline \text { Accounts payable } & & \$ 3,000 \\ \hline \text { Notes payable } & & 25,000 \\ \hline \text { Capital } & &90,000 \\ \hline \text { Drawing } & 1,000 & \\ \hline \text { Sales revenues } & & 160,000 \\ \hline \text { Sales returns and allowances } &2,000 & \\ \hline \text { Sales discounts } & 3,000 & \\ \hline \text { Cost of goods sold } &80,000 & \\ \hline \text { Salary expense } &5,000 & \\ \hline \text { Utility expense } &23,000 & \\ \hline \text { Rent expense } & 18,000& \\ \hline \text { Interest expense } &2,000 \\ \hline \text { Totals } &\$ 278,000 & \$ 278,000 \\ \hline \end{array}\] - How much are Net sales revenues?

A) $155,000 B) $160,000 C) $27,000 D) $75,000 A) $155,000 B) $160,000 C) $27,000 D) $75,000

Exam 5: Merchandising Operations

The following refers to periodic inventory: Compute Cost of goods sold. Net sales \ 198,000 Purchases 92,000 Purchases returns and allowances 1,800 Purchases discounts 1,250 Preight in 1,590 Beginning merchandise inventory 63,000 Ending merchandise inventory 37,000

(Multiple Choice)

4.9/5

(72)

Question 81

Merchandising consists of:

(Multiple Choice)

4.7/5

(83)

Question 82

What is freight in?

(Multiple Choice)

4.7/5

(77)

Question 83

A sales allowance is recorded with a credit to Accounts receivable.

(True/False)

4.9/5

(78)

Question 84

Sales revenues were $20,000,Sales Returns and allowances were $300,Sales discounts were $700,Cost of goods sold were $12,000,and all other expenses totaled $4,500.The second closing entry would include which of the following line items?

(Multiple Choice)

4.8/5

(85)

Question 85

In a multi-step income statement,which of the following items are NOT included in Operating income?

(Multiple Choice)

5.0/5

(93)

Question 86

An adjusted trial balance is shown below. Debit Credit Cash \ 12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable \ 4,200 Salary payable 1,000 Notes payable 800 Capital 13,800 Drawing 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expens 14,000 Depreciation expense 8,500 Supplies expense 500 Total \ 115,800 \ 115,800 -Please provide the fourth closing entry.

(Essay)

4.8/5

(81)

Question 87

Please refer to the following trial balance. Debit Credit Cash \ 5,000 Accounts receivable 14,000 Inventory 20,000 Supplies 5,000 Land 100,000 Accounts payable \ 3,000 Notes payable 25,000 Capital 90,000 Drawing 1,000 Sales revenues 160,000 Sales returns and allowances 2,000 Sales discounts 3,000 Cost of goods sold 80,000 Salary expense 5,000 Utility expense 23,000 Rent expense 18,000 Interest expense 2,000 Totals \ 278,000 \ 278,000 - How much are Net sales revenues?

(Multiple Choice)

4.9/5

(92)

Question 88

Smith Company has a low number of days in inventory.This indicates that:

(Multiple Choice)

4.8/5

(77)

Question 89

A company purchased inventory for $2,200 on account,and recorded the following journal entry: Inventory 2,200 Accounts payable 2,200 The vendor's invoice showed terms of 3/10,net 30.Please provide the journal entry for the payment of the invoice on the 7th day (using the perpetual inventory method).

(Essay)

4.9/5

(88)

Question 90

Smith Company tries to manage their inventory levels so that they will have just enough to meet customer demand,without keeping an excess of funds tied up in inventory.Given this situation,Smith Company hopes to have a high number of days in inventory.

(True/False)

4.9/5

(78)

Question 91

A company uses the periodic inventory method.Which of the following entries would be made to record a purchase of inventory on account?

(Multiple Choice)

4.9/5

(84)

Question 92

A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10,n/30.Defective inventory of $200 is returned 2 days later and the accounts are appropriately adjusted.If the company paid the vendor 25 days later,which of the following entries would be made to record the payment?

(Multiple Choice)

4.8/5

(70)

Question 93

A company uses the periodic inventory method.Which of the following entries would be made to record a $1,200 purchase of inventory on account?

(Multiple Choice)

4.7/5

(68)

Question 94

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200. -Everett paid transportation costs of $100 to ship the goods to the customer.Please provide the journal entry to record transportation costs.

(Essay)

4.9/5

(73)

Question 95

A sales return is recorded with a credit to Inventory.

(True/False)

4.9/5

(79)

Question 96

An invoice is dated April 28 for $235.00 and is shown with payment terms of 5/10,n/30.If the invoice is paid on May 12,the amount to pay will be:

(Multiple Choice)

4.8/5

(90)

Question 97

Reid Art Supply Company uses a perpetual inventory system.The company had the following transactions during August,2012: Aug.5 Reid Company purchased $2,900 of merchandise on account.Freight and credit terms were FOB shipping point,3/15,n/60. Aug.9 Reid Company paid transportation costs of $440 for the Aug.5 purchase. Aug.10 Reid Company returned $600 of defective merchandise that had been purchased on Aug.5. Aug.15 Reid Company paid for the merchandise purchased on Aug.5. - Please provide the journal entry on Aug.9.

(Essay)

4.9/5

(79)

Question 98

A company has purchased inventory and receives an invoice that indicates that the buyer must pay the transportation costs of delivering the merchandise.Which of the following will most likely be noted as the delivery terms?

(Multiple Choice)

4.8/5

(92)

Question 99

In a multi-step income statement,Operating expenses are subtracted from Gross profit to compute:

(Multiple Choice)

4.8/5

(79)

Question 100

The following refers to periodic inventory: Compute Cost of goods sold. Net sales \ 198,000 Purchases 92,000 Purchases returns and allowances 1,800 Purchases discounts 1,250 Preight in 1,590 Beginning merchandise inventory 63,000 Ending merchandise inventory 37,000

Merchandising consists of:

What is freight in?

A sales allowance is recorded with a credit to Accounts receivable.

Sales revenues were $20,000,Sales Returns and allowances were $300,Sales discounts were $700,Cost of goods sold were $12,000,and all other expenses totaled $4,500.The second closing entry would include which of the following line items?

In a multi-step income statement,which of the following items are NOT included in Operating income?

Smith Company has a low number of days in inventory.This indicates that:

A company purchased inventory for $2,200 on account,and recorded the following journal entry: Inventory 2,200 Accounts payable 2,200 The vendor's invoice showed terms of 3/10,net 30.Please provide the journal entry for the payment of the invoice on the 7th day (using the perpetual inventory method).

Smith Company tries to manage their inventory levels so that they will have just enough to meet customer demand,without keeping an excess of funds tied up in inventory.Given this situation,Smith Company hopes to have a high number of days in inventory.

A company uses the periodic inventory method.Which of the following entries would be made to record a purchase of inventory on account?

A company uses the periodic inventory method.Which of the following entries would be made to record a $1,200 purchase of inventory on account?

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200. -Everett paid transportation costs of $100 to ship the goods to the customer.Please provide the journal entry to record transportation costs.

A sales return is recorded with a credit to Inventory.

An invoice is dated April 28 for $235.00 and is shown with payment terms of 5/10,n/30.If the invoice is paid on May 12,the amount to pay will be:

A company has purchased inventory and receives an invoice that indicates that the buyer must pay the transportation costs of delivering the merchandise.Which of the following will most likely be noted as the delivery terms?

In a multi-step income statement,Operating expenses are subtracted from Gross profit to compute:

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters